GOLDEN CIRCLE explained in under 5 Minutes | Simon Sinek | WHY? HOW? WHAT? | Original TED Talk

Summary

The Golden Circle concept emphasizes the importance of understanding 'why' an organization exists, beyond just 'what' it does or 'how' it operates. Apple serves as a prime example, illustrating that by communicating their purpose first, they inspire customers to resonate with their beliefs, leading to loyalty and sales. This approach is rooted in human biology, where the limbic brain, responsible for decision-making and emotions, is more influenced by a clear 'why' than by rational details.

Takeaways

• 🌟 The Golden Circle is a concept that emphasizes the importance of understanding why an organization exists, beyond just what it does or how it operates.
• 💼 Most people and organizations know what they do and some know how they do it, but very few understand their 'why' - their purpose or belief.
• 🍎 Apple is used as an example to illustrate how a company communicates its 'why' first, which makes their products more appealing to consumers.
• 💭 The typical marketing approach focuses on what a company does and how it does it, but this doesn't necessarily inspire action or loyalty.
• 🛒 Consumers are more likely to buy from a company that they believe in, based on its purpose and values, rather than just the products or services it offers.
• 🧠 The human brain is divided into three parts that correlate with the Golden Circle: the neocortex (what), and the limbic brain (how and why).
• 🤔 The neocortex handles rational and analytical thought, while the limbic brain controls feelings, trust, loyalty, and all decision-making.
• 🗣️ Communication that starts from the outside (what and how) doesn't drive behavior as effectively as communication that starts from the inside (why).
• 💬 When you communicate your 'why' first, you speak directly to the part of the brain that controls behavior, allowing people to rationalize their decisions with the tangible details.
• 💖 The goal of business should be to connect with people who share the same beliefs, not just to sell to anyone who needs what you have.
• 🔑 Loyalty comes from understanding and connecting with a company's 'why', which is more powerful than just knowing what the company does or how it operates.

Q & A

What is the Golden Circle and why is it significant?

The Golden Circle is a model that explains the importance of understanding why an organization or individual does what they do, beyond just what they do and how they do it. It's significant because it emphasizes the power of purpose and belief in driving behavior and loyalty.

Why do people buy from Apple according to the Golden Circle?

People buy from Apple because of the 'why' behind their products—their belief in challenging the status quo and thinking differently—rather than just the features of the products themselves.

What does the 'why' in the Golden Circle refer to?

The 'why' refers to the purpose, cause, or belief of an organization or individual. It's the reason why they exist and what drives their actions.

What is the difference between 'what' and 'why' in the context of the Golden Circle?

The 'what' refers to the products or services an organization offers, while the 'why' is the underlying purpose or belief that motivates the organization to offer those products or services.

How does the Golden Circle relate to the human brain's structure?

The Golden Circle correlates with the three major components of the human brain: the neocortex (responsible for rational and analytical thought and language) corresponds to 'what', while the limbic brain (responsible for feelings and decision-making) is connected to 'why'.

Why is it important for an organization to know its 'why' according to the script?

Knowing the 'why' is important because it helps an organization to connect with people on a deeper level, driving behavior and loyalty beyond just the appeal of products or services.

How does the script suggest we should communicate our 'why'?

The script suggests that we should communicate from the inside out, starting with the 'why', which talks directly to the part of the brain that controls behavior, and then allowing people to rationalize it with the tangible details.

What is the role of the limbic brain in decision-making according to the script?

The limbic brain is responsible for all human behavior and decision-making. It controls feelings like trust and loyalty but has no capacity for language, which is why decisions often come from a 'gut feeling'.

Why do people say 'it doesn't feel right' when making decisions?

People say 'it doesn't feel right' because the limbic brain, which controls decision-making, does not control language. This is why we struggle to articulate why a decision feels off, even when presented with facts and figures.

What is the goal of doing business according to the Golden Circle?

The goal is not to do business with just anyone who needs what you have, but to do business with people who believe what you believe, creating a connection based on shared values and beliefs.

How does the script explain the success of Apple's marketing strategy?

The script explains that Apple's success comes from their marketing strategy that communicates their 'why' first, which resonates with people's limbic brains, leading to a desire to purchase their products.